EBITDA Calculator

About this calculator

EBITDA — earnings before interest, taxes, depreciation and amortization — strips out financing decisions, tax jurisdictions and non-cash accounting charges to show how much cash profit a company's core operations actually generate. The formula is simple: EBITDA = net income + interest + taxes + depreciation + amortization, and the closely related EBIT figure stops one step earlier by adding back only interest and taxes, leaving depreciation and amortization in place.

Equity analysts and private equity firms lean on EBITDA because it lets them compare companies that carry very different debt loads, tax rates or capital-intensity levels on a like-for-like basis — it is the standard denominator behind the EV/EBITDA valuation multiple used in M&A and lending covenants. The EBITDA margin (EBITDA divided by revenue) then shows how much of every dollar of sales converts into operating cash profit, which is useful for tracking a company's operating efficiency over time.

This calculator takes your net income and the four add-back items and returns EBITDA, EBIT and the EBITDA margin together, so you can see how each adjustment moves the numbers.